remember the '90s? gap was a megabrand, defining fashion with its khakis, denim, tees and button down shirts. but as the millennium turned, so did gap's u.s. sales. the retailer has steadily lost ground to rivals like h&m and zara. >> the fast fashion retailers have really markedly changed the face of fashion as we know it. kids, teens, adults no longer want to wear an identifiable uniform. you are not going to see as many logo-driven items any more. >> reporter: in the past year, gap has made some bold changes, shaking up its management team, and putting more emphasis on fashion. that's where intermix comes in. the chain sells designer labels like jimmy choo, mulberry, yves saint laurent, fendi, and rag and bone. analyst oliver chen, whose firm does business with gap, thinks the deal is a win-win for both firms: >> i think intermix brings a lot of fashion credibility to the gap. also the gap brings cash flow and capital to intermix. intermix can probably have a very successful online business.